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In Broome in 1969, Willie Johnson (Rocky McKenzie) is having trouble wooing his girl Rosie (Jessica Mauboy), who ends up with a bandleader named Lester (Dan Sultan). His mother Theresa (Ningali Lawford) sends him back to boarding school in Perth to continue his education for the priesthood. One night, he and several others steal food from the college kitchen but are caught. Willie admits to being the thief, but runs away before he can be punished. He spends the night on the streets of Perth before meeting up with 'Uncle' Tadpole (Ernie Dingo), who offers to help him get home. They go to Fremantle where Tadpole allows himself to be run over by a Kombi van, hoping that the two hippies inside will help him. Not realising how far it will be to Broome, the hippies, 'Slippery' the German (Tom Budge) and Annie (Missy Higgins), his girlfriend, agree to drive them.

Father Benedictus (Geoffrey Rush), head of the College, has seen Willie's potential and determines to locate him; through Tadpole's homeless friends, he learns that Willie is heading to Broome. The travellers drive north, stopping at a roadhouse where Willie meets the tarty 'Roadhouse Betty' (Magda Szubanski). Tadpole steals some food, a bottle of wine, and an audio tape, nearly causing them to get shot by Betty, but they manage to escape. Slippery becomes disillusioned, and leaves Willie and Tadpole behind in the middle of nowhere; Tadpole curses the hippies by pointing a bone, and the van promptly breaks down.

Willie then gets a ride with a passing truck carrying the members of a football team. They end up in Port Hedland where he meets flirty Roxanne (Deborah Mailman), who takes him to the 'condom tree' and offers to 'show him a good time', but her boyfriend turns up and a fight ensues. Willie is rescued by Tadpole, who says that all young men end up there at some point. The next morning, they are driving along a desert road when a hung-over Roxanne emerges from the back seat, startling everyone. While smoking some pot, they are discovered by police and arrested, despite Annie's attempts at stopping the police from arresting them. At the police station, Slippery reveals that his real name is Wolfgang Benedictus. The police then put them in a jail cell for a night.

They are released next morning, and drive on to Broome, where they go to the bar where Rosie is performing. Willie tries to win her back, but ends up in a fight with Lester, only to be disrupted by a church temperance march, which invites everyone to the beach to testify. Willie tells Rosie he loves her, and they kiss. At the beach, Willie's mother reveals that she had a son to another man, who turns out to be Father Benedictus. Wolfgang is their son. Tadpole is spotted by Willie's mother, and she tells Willie that he is Tadpole's son.

Ernie Dingo as Stephen "Uncle Tadpole" Johnson, a drunk who accompanies Willie on his adventure. Dingo played the role of Tadpole in the original production of the stage play Bran Nue Dae in 1989.[7]

Missy Higgins as Annie, Slippery's spiritual girlfriend who is travelling with him to Perth.[5] This is Higgins' acting debut.[8]

Geoffrey Rush as Father Benedictus, the film's antagonist; as a strict German priest who runs the Catholic Mission in Perth training young men to become priests, he pursues Willie who ran away from the school.[5] The role was offered to Rush by director Perkins.[9]

The film was theatrically released in Australia on 14 January 2010[5] and had an opening weekend rank of #6, averaging $6,977 at 231 screens for a gross of $1.6 million,[16] $3.7 million in its first two weeks[17] and eventually grossing more than $7.5 million.[4] The film "... has since become one of the Top 50 Australian films of all time at the local box office."[17]

The film received generally mixed reviews. Review aggregator website Rotten Tomatoes reports that 57% of critics have given the film a positive review based on 60 reviews, with an average score of 6/10. The critical consensus is: "It's original and high-spirited, but Bran Nue Dae is also uneven and sometimes overly kitschy."[18]

Dennis Harvey of Variety said "It retains that dated once-almost-hip look – like Up with People", but it contained "blandly stereotypical characters in a trite road-trip narrative" and in regards to younger audiences, claimed "There's scant real dancing, mostly forgettable, showtune-type songs and no ethnic authenticity."[19]Craig Mathieson of SBS Films commented that "Bran Nue Dae has a daffy, garish energy that's reflected in brisk pacing and up-tempo tunes". On director Perkins, he stated "Visually, Perkins is not a natural fit for this material", comparing it to her 1998 feature Radiance, but "here she enthusiastically takes to the moments of farce and productions numbers." In terms of choreography the "frames feel cluttered, with an occasional echo of the amped-up musical melodrama" but ending it on a positive note with "like another Australian musical [...] Bran Nue Dae carries the day with energy and self-belief."[2]The Age‍ '​s Philippa Hawker praised the cast, stating Dingo was "terrific as Uncle Tadpole",[20] for Rush who "brings an idiosyncratic physical energy and an extravagant German accent to the role" and newcomer Jessica Mauboy brought "sweetness and confidence to the role of Rosie".[20]